Markets Anxious Ahead of Eid Holiday; These Stocks Enter Analyst Recommendations
Jakarta — The Composite Stock Price Index (IHSG) closed trading on Monday (16 March) in the red, falling 1.61% to 7,022.29.
Several stocks that served as primary market drivers included EMAS, which surged 17.86%, SMMA rising 9.00%, and CPIN strengthening 10.28%. Meanwhile, stocks that most pressured the index included DSSA falling 8.03%, BRMS weakening 14.56%, and AMMN declining 8.89%.
From the perspective of foreign fund flows, global investors continued to record net buying activity. In the regular market, foreign investors recorded net purchases of Rp177.51 billion. When calculated across the entire market, foreign net buying reached Rp1.02 trillion.
By sector, weakness occurred in most sectors. Eight of eleven sectors closed lower. The technology sector recorded the steepest decline with a 2.34% correction. Meanwhile, the financial sector was the only sector recording the highest gain, rising 0.45%.
In contrast to the domestic market, the US stock market closed stronger. The Dow Jones Index rose 0.83% to 46,946. The S&P 500 strengthened 1.01% to 6,699, whilst the Nasdaq rose 1.22% to 22,374.
Nevertheless, high volatility continues to shadow global markets, both in commodities and shares. Sharp price movements occurred particularly from the energy sector to technology stocks, particularly companies related to artificial intelligence (AI).
Amid these conditions, the weakening trend in Indonesia’s stock market remains strong. This is reflected in the decline of the Indonesia ETF index EIDO, which fell 0.71%, and the MSCI Indonesia index, which weakened 2.37%.
Meanwhile, Market Vectors Index Solutions (MVIS) announced changes to the composition of its global gold sector index. Three Indonesian gold mining companies—Archi Indonesia (ARCI), Merdeka Gold Resources (EMAS), and J Resources Asia Pacific (PSAB)—have officially entered the MVIS Global Junior Gold Miners Index (GDXJ). The inclusion of these three stocks is valued as potentially increasing exposure and attractiveness to global investors.
However, Bumi Resources Minerals (BRMS) has not yet entered the constituents of this index. Notably, the company recorded fairly strong performance with net profit nearly doubling to US$50.08 million, compared to US$25.12 million in the previous year.
From a technical perspective, BRMS stock is estimated to still have potential to continue correcting towards the Rp650 level. This is in line with the formation of lower low and lower high patterns and stochastic indicators showing a dead cross signal in neutral territory.
On the corporate side, Merdeka Battery Materials (MBMA) is preparing maximum funds of Rp1.70 trillion for share buyback actions. The company is targeting the purchase of up to 1.80 billion shares.
The buyback programme will run from 17 March to 16 June. With this action, the weighted average number of outstanding shares is estimated to decline to around 106.19 billion shares from the previous 107.99 billion shares.
Assuming an exchange rate of Rp17,000 per US dollar, MBMA’s earnings per share (EPS) is projected to increase slightly to Rp4.08 from the previous Rp3.91.
From a technical perspective, MBMA stock remains in an uptrend with movement range between Rp630 and Rp720.
Stock Recommendations Today from Mega Capital Securities:
CPIN: Buy 3,900–3,930 | Target Price 4,020–4,090 | Stop Loss 3,680
CYBR: Buy 1,420–1,430 | Target Price 1,470–1,500 | Stop Loss 1,340
IATA: Buy 75–77 | Target Price 79–82 | Stop Loss 70
RATU: Buy 4,810–4,820 | Target Price 5,000–5,125 | Stop Loss 4,500
SCMA: Buy 268–270 | Target Price 280–284 | Stop Loss 252